Barings trial stalls.
E&Y faced a legal challenge on Monday from a group of US creditors seeking to oust the firm as liquidator of Barings, which collapsed in 1995.
Known as vulture funds, the group wanted to replace the firm with KPMG. Alan Bloom, E&Y’s head of corporate restructuring, told Accountancy Age: ‘The application to have the liquidators removed was refused.’
As predicted by Accountancy Age the High Court win for E&Y now opens the channels for a settlement with the defendants Coopers & Lybrand, now part of PricewaterhouseCoopers and Deloitte & Touche. Both firms acted separately as auditors of the bank in the early 1990s.
Both Coopers and E&Y sought an adjournment last Friday indicating their interest in settling out of court to avoid bad publicity and a lengthy trial. E&Y is suing Coopers’ UK and Singapore branches and Deloittes for #1bn for negligence over the losses of rogue trader Nick Leeson.
More on this story at www.accountancyage.com/Practice/1122126.